Ulta Beauty, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

9 Months Ended

Nov. 02, 2019

Schedule of weighted-average remaining lease term and discount rate for operating leases

The following table presents supplemental balance sheet information, the weighted-average remaining lease term, and discount rate for operating leases as of November 2, 2019:



(In thousands)	Classification on the Balance Sheet	November 2, 2019
Right-of-use assets	Operating lease assets	$	1,529,524

Current lease liabilities	Current operating lease liabilities	$	222,627
Non-current lease liabilities	Non-current operating lease liabilities		1,706,806
Total lease liabilities		$	1,929,433

Weighted-average remaining lease term			6.8 years
Weighted-average discount rate			4.1%

Summary of information related to lease costs for operating leases

The following table presents the components of lease cost for operating leases:


		13 Weeks Ended		39 Weeks Ended
(In thousands)	Classification on the Statement of Income	November 2, 2019		November 2, 2019
Operating lease cost	Cost of sales (1)	$	72,467	$	215,388
Variable lease cost	Cost of sales		(1,834)		(5,158)
Short-term lease cost	Selling, general and administrative expenses		109		247
Sublease income	Net sales		(135)		(425)
Total lease cost		$	70,607	$	210,052

(1) The majority of operating lease cost relates to retail stores and distribution centers and is classified within cost of sales. Operating lease cost for corporate offices is classified within selling, general and administrative expenses. Operating lease cost from the control date through store opening date is classified within pre-opening expenses.

Schedule of cash flow information and non-cash activity related to operating leases

The following table presents supplemental disclosures of cash flow information related to operating leases:


	39 Weeks Ended
(In thousands)	November 2, 2019
Cash paid for operating lease liabilities (1)	$	251,468
Operating lease assets obtained in exchange for operating lease liabilities (non-cash)	$	287,645

(1)	Excludes $57,160 related to cash received for tenant incentives.

Schedule of maturities of non-cancellable operating lease liabilities

The following table presents maturities of operating lease liabilities as of November 2, 2019:


Fiscal year	(In thousands)
2019 (1)	$	35,555
2020		348,826
2021		337,449
2022		319,252
2023		283,484
2024 and thereafter		919,024
Total lease payments	$	2,243,590
Less: Imputed interest		(314,157)
Present value of operating lease liabilities	$	1,929,433

(1)	Excluding the 39 weeks ended November 2, 2019 and net of tenant incentives.

Operating lease payments exclude $186,632 of legally binding minimum lease payments for leases signed but not yet commenced.